The Minister for Environment Chief Sharon Ikeazor said at the Digital Closing Gong Ceremony that the Federal Government of Nigeria will continue to collaborate with the Nigerian Exchange Limited to build a framework that will help issuers navigate climate data available to the investment and finance community. The ceremony was hosted by NGX to mark the end of trading for the year 2021.
Chief Ikeazor noted that NGX has played an admirable role in Nigeria’s dedication to alleviate the effects of climate change. She added that climate change is a serious and long term threat to which the country has shown commitment to the the goals of Paris Agreement on Climate Change with its revision of the Nationally Determined Contributions (NDCs) pre-COP 26
Ikeazor further stated that “with the step taken immediately after COP26, Nigeria has further demonstrated its commitment towards the Paris Agreement on Climate Change. As part of measures to comply with the National Determined Contributions (NDC) in emissions reduction to climate change in Nigeria, the Federal Government launched the Nigeria Deep Decarbonization Project.” She also mentioned that investors are increasingly working together in response to climate change and added that the Federal Government would continue to engage NGX on climate disclosure and data.
The Minister added saying “I hope there will be a continuous collaboration between NGX and the Federal Ministry of Environment to build a framework that will help issuers navigate climate disclosure, associated engagement with their shareholders, and ultimately improve the climate data available to the investment and finance community. Partnership with NGX will provide investors with important new tools to enable capital reallocation.”
The Chief Executive Officer, NGX, Temi Popoola in welcoming the Minister mentioned that NGX remains resolute in its commitment to promoting sustainable finance because it recognises that urgent action is required to combat climate change and its impact as incorporated in the Paris Agreement on Climate Change and Goal 13 of the Sustainable Development (SDGs).
He further said, “We are committed to fostering the growth of sustainable financial products which integrate the financial risk and opportunities associated with climate change and other environmental challenges. NGX has shown strong commitment to sustainable finance over the years.
In 2016, NGX collaborated with the Ministry of Environment and Debt Management Office (DMO) to deepen the Green Bond market. This effort led to the issuance if the maiden N10.69 billion ($25.8million) 13.48 percent 5 year Green Bond in 2017 to fund projects to develop renewable energy. The second tranche, N15billion ($36.1million) 14.5 percent 7 year Green Bond was issued in June 2019 and was over subscribed.”
